LAHORE, June 21: Following the signing of an agreement with the Pakistan government for providing $840 million for 1,410MW Tarbela 4th extension project, the World Bank has also agreed to provide financial assistance for 4,320MW Dasu hydropower project.

In a meeting to discuss a report by the international panel of experts, Wapda Chairman Shakil Durrani said it had been agreed that the project would be constructed in phases after the 4,500MW Diamer-Bhasha dam project was initiated and financial plan finalised.

The chairman said that international financial institutions had taken keen interest in providing funds for Wapda projects due to excellent Economic Internal Rate of Returns (EIRR) of these schemes.

The Dasu hydropower project is a part of least-cost energy generation plan, being executed by Wapda to harness indigenous hydropower resource of the country with a view to improve the ratio of hydel electricity in the national grid.

The project is proposed to be constructed on the River Indus, some seven kilometers upstream of Dasu village and 74 kilometers downstream of the Diamer-Bhasha dam project. Site of the project is situated at Karakoram Highway, about 350 kilometers away from Islamabad.

The Wapda priority is to construct the Diamer-Bhasha dam for which land acquisition has already started and 13 contracts for offices, colonies and roads awarded. The Dasu hydropower project would follow the initiation of the Diamer-Bhasha dam project. Detailed engineering design, the PC-I and tender documents of the project are likely to be completed in early 2013 while the construction work will commence afterwards.

The World Bank is providing funds for the preparation of detailed engineering design. On completion, the project will generate 21.3 billion units of electricity per annum.

The completion of the project will also have positive impact on the existing hydel power stations, including Tarbela, Ghazi Barotha and Chashma.

The Member (Water), secretary and general managers concerned attended the meeting.